FTSE 100 (UKX) Heads Up For the 2nd Consecutive Day, Breaks Above 20 Day Average; in a Downtrend Over Past 30 Days

The Hourly View for UKX

Last Updated February 15, 2021, 23:18 GMT

At the moment, FTSE 100’s price is down -5 (-0.07%) from the hour prior. The hourly chart shows that FTSE 100 has seen 2 straight down hours. As for the trend on the hourly timeframe, we see the clearest trend on the 50 hour timeframe. Price action traders may also wish to note that we see a doji candlestick pattern on FTSE 100. Given that we see an uptrend on the 20 and 10 hourly candle timeframe, and that such candlestick patterns often denote reversals, this may be worth noting. The moving averages on the hourly timeframe suggest a bearishness in price, as the 20, 50, 100 and 200 are all in a bearish alignment — meaning the shorter duration moving averages are below the longer duration averages, implying a stable downward trend.

FTSE 100 Daily Price Recap

FTSE 100 is up 0.94% (61.07) since the previous day, marking the 2nd consecutive day it has gone up. Relative to other instruments in the equity indices asset class, FTSE 100 ranked 2nd since the previous day in terms of percentage price change. Below is a daily price chart of FTSE 100.

UKX

FTSE 100 Technical Analysis

Notably, FTSE 100 crossed above its 20 day moving average yesterday. Volatility for FTSE 100 has been contracting over the past two weeks relative to volatility over the past month. Whether volatility reverts will be something to watch. Trend traders will want to observe that the strongest trend appears on the 90 day horizon; over that time period, price has been moving up. Interestingly, a trend in the other direction exists on the 30 day timeframe, where price is headed down. If you’re looking to trade the primary trend, this may be a good opportunity to buy dips created by the counter trend. Price action traders in particular will want to note that the 14 day period appears to show price forming a base; this could indicate that a support/resistance level is developing. For additional context, note that price has gone up 6 out of the past 10 days.